HomeMy WebLinkAbout020804 ORD - 10/24/1989ORDINANCE
AUTHORIZING CITY MANAGER TO EXECUTE A 10 -YEAR
LEASE AGREEMENT WITH ONE OPTION TO RENEW FOR A
5 -YEAR PERIOD TO J -SAND, INC. COVERING
APPROXIMATELY 22 ACRES OF CORPUS CHRISTI BEACH
PARK
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. That the City Manager be authorized to
execute a 10 -year lease agreement with one option to renew
for a 5 -year period to J -Sand, Inc., covering approximately
22 acres of Corpus Christi Beach Park, a copy of which
agreement is attached hereto and made a part hereof marked
Exhibit A.
89JB005.003.dv
-s,tsf • MICROFfmED
EXHIBI-
LEASE AGREEMENT
THE STATE OF TEXAS §
COUNTY OF NUECES §
WHEREAS, the CITY OF CORPUS CHRISTI, TEXAS (the "City")
seeks to establish an attractive year -around recreational vehicle
park/camping area on Corpus Christi Beach Park;
WHEREAS, the City issued a request for proposals for
development of a Corpus Christi Beach Recreational Vehicle
Facility; and
WHEREAS, JIM HALL, SANDRA HALL and AKA J -SAND SERVICES,
LTD. ("J -Sand") submitted a proposal for construction and
operation of a recreational vehicle and camping park:
Now, therefore, for and in consideration of the mutual
agreements and covenants contained herein City and Lessee do
agree as follows:
I.
LEASED PREMISES. City hereby leases to J -Sand the
approximately 22 acres on the north end of Corpus Christi Beach
within Corpus Christi Beach Park bounded by Corpus Christi Bay on
the north and east and by U.S. Highway 181 on the west and more
particularly described in Exhibit "1" attached hereto and made a
part hereof (the "Property").
II.
TERM. The term of this Lease shall be 10 years,
with the effective date for commencement occurring sixty days
after full execution of this lease agreement. This lease may be
renewed for 1 term of 5 years at the option of both the City and
the lessee.
III
PERMITTED USE AND IMPROVEMENTS. The Property shall be
used solely for construction and operation of a recreational
vehicle and camping facility including but not limited to:
(a) recreational vehicle park with spaces for no less
than 250 recreational vehicles, with
each space to include water, electrical, cable TV
and sewer connections;
(b) a main office/building complex with a 2400 sq. foot
meeting/recreational room and kitchen facilities;
(c) a 20'x40' swimming pool with movable cover;
(d) adequate toilet-shower facilities;
(e) washateria with at least 16 washing machines and
4 commercial clothes dryers;
(f) security lighting;
(g) campsites;
(h) recreation facilities such as volleyball courts,
shuffleboard courts, tennis courts, horse shoe
pits, playground equipment, landscaped open space,
and covered picnic areas;
(i) adequate public parking (no less than 15 spaces);
(j) extensive landscaping with a complete sprinkler
system;
(k) perimeter security fence;
(1) paved streets and pathways as needed;
(m) holding tank disposal facility; and
(n) wetland observation area and nature trail.
All facilities shall be made available to the public for its use.
IV.
CONSTRUCTION. J -Sand agrees to construct all
improvements, including but not limited to those listed under
provision III of this agreement under the following terms and
conditions:
(a) The plans and specifications for all facilities,
site improvements, landscaping and any changes
thereto must be approved by the City prior to
construction and shall be of the highest aesthetic
quality.
(b) J -Sand shall have sole and full responsibility for
preparing the plans, administering construction and
inspection of the project.
(c) On premises signs will be limited to two entrance
wall signs with no more than 20 square feet sign
surface each.
(d) All electrical, phone and cable lines are to be
placed underground.
(e) J -Sand agrees to complete Phase I construction, as
identified by Exhibit "2", of no less than 100
spaces for recreational vehicles (including utility
hook-ups) and support facilities within 200
calendar days of the effective date of this Lease
Agreement. The remaining spaces for recreational
vehicles will be completed no later than 18 months
after the effective date of this Lease Agreement.
All improvements listed under provision III of this
Agreement shall be completed and operational no
later than 18 months after the effective date of
this Lease Agreement, provided that the City
Manager, or his designee, may extend the time of
performance if J -Sand has been impeded by inclement
weather or catastrophe.
V.
COSTS. Costs of construction, landscaping and other
site improvements including all permits, utility construction and
hook-up fees shall be borne entirely by J -Sand. Wetland
mitigation costs shall be borne entirely by J -Sand as provided in
Provision VI.(b) below.
VI.
PERMITS AND CLEARANCES.
(a) J -Sand agrees that in construction upon and
operation of the Property it will promptly comply
with and fulfill all ordinances, regulations, and
codes of federal, state, county, city or any other
governmental agencies applicable to said Property,
and all ordinances or regulations imposed by City
for the correction, prevention and abatement of
nuisances or code violations in or connected with
said Property during the term of this lease, at its
sole expense and cost.
(b) Upon the City's receipt of a Corps of Engineers
permit for wetland disturbance, J -Sand shall
perform and pay for all mitigation (clearing,
grading, planting, etc.), unless, prior to
performance of any mitigation construction work,
J-Sand and City mutually agree that City shall
perform the mitigation construction work. The City
will provide the property for said mitigation.
VII.
FINANCIAL ASSURANCE. In order to assure City that
J-Sand is financially sound and capable of constructing and
operating the improvements set forth in this agreement, J-Sand
will deliver to City a certificate of deposit or its equivalent,
in the amount of $50,000 to be held in escrow by City, to be
returned with all interest earned to J-Sand upon final acceptance
by City of Phase 1 as identified by Exhibit 2. In the event
J-Sand fails to construct the improvements as described, it would
be impossible to ascertain the damage incurred by the City.
Therefore, J-Sand and City hereby agree that $50,000 is a fair
and reasonable compensation for J-Sand's failure to perform
pursuant to this Agreement. If J-Sand fails to construct the
improvements set out in Exhibit 2, City shall retain the $50,000
and all interest earned as liquidated damage. The delivery of
the certificate of deposit or its equivalent shall be made by
J-Sand prior to construction start or 60 days after the effective
date of the Lease Agreement, whichever comes first.
VIII.
REMUNERATION. J-Sand agrees to pay to City each month
during the term of the lease the following amounts for the use of
the Property:
Payment Monthly
Lease Years Greater of % of Gross Receipts or Lump Sum
1 3% $500
2 3% $700
3 3% $900
4-6 50 $1500
7-10 7% $2000
11-15
(if applicable) 9% $3000
Gross receipts are to include and be limited to revenue from
camping and RV space rental, recreation building rental and pool,
shuffleboard court and tennis court rental.
The payments due City under this section commence when
the first 100 recreational vehicle spaces are constructed and
operational and accepted by the City. Payments will be paid on
or before the 15th of each month and based upon documented
financial reports and receipts submitted to the City and an
annual review of all financial records. J -Sand will maintain and
provide for inspection of adequate records showing all receipts
and disbursements. Such records are to be kept in accordance
with standard accountancy practices and procedures.
IX.
INSURANCE AND INDEMNITY.
(a) J -Sand shall acquire and maintain the following
insurance coverages during the term of this Lease
Agreement:
(1) liability insurance covering all activities to
be conducted on the Property, with the city as
an additional insured, noncancelable except
upon thirty (30) days written notice to the
City, in such amount and with such terms and
coverages as required by the City Manager, or
his designee, commencing upon receipt by J-Sand
of applicable permits required for construction
to proceed;
(2) property insurance in the amount of the full
replacement value of all buildings and
improvements, insuring against all risks as
required by the City Manager, or his designee,
which shall be noncancelable except upon thirty
(30) days written notice to City, shall name
City as an additional insured, and shall
contain such terms as required by the City
Manager, or his designee, commencing as
improvements and buildings are erected upon
Property.
(b) In addition, J-Sand shall require any contractor
for construction of any buildings or improvements
under this Lease Agreement to carry insurance
coverages throughout the construction period with
terms and amounts as required by the City Manager.
The amount and terms of coverages required in this
paragraph shall be substantially similar to those
required by the City for similar operations, and
shall be re-evaluated on an annual basis.
(c) J-Sand shall provide City with certificates of
insurance reflecting all the above coverages, and
shall, upon request by City, promptly provide City
with copies of all such insurance policies. In the
event the insurance is cancelled or not renewed and
City is given the 30 days notice, J-Sand has 15
days to reinstate the insurance or provide
substitute insurance in the amounts required.
(d) J-Sand agrees to indemnify and forever save
harmless the City, its officers, agents, and
employees, for any and all lawsuits, claims,
damages, liabilities, losses, and expenses from
(including court costs, attorney fees, and expert
witness fees) for or on account of any injury to
any person, or death at any time resulting from
such injury, or damage to any property, which may
arise or which may be alleged to have arisen out of
or in connection with any activity by J-Sand, its
agents, employees, or independent contractors
pursuant to this Agreement. It is agreed by and
is the intention of J-Sand to indemnify the City
regardless of whether the claims, demands or suits
arise from the sole or joint negligence of the
party indemnified herein.
X.
ASSIGNMENT OR SUBLEASE. J-Sand shall not sell the
entity of J-Sand or assign this Lease Agreement nor sublet the
Property or any part thereof without the prior written consent of
the City. The consent of the City shall not be unreasonably
withheld.
XI.
TERMINATION.
(a) Upon thirty days prior written notice to J -Sand,
City may, at its option, in addition to any other
remedy or right hereunder or by law, terminate this
Lease Agreement upon occurrence of any of the
following conditions ("Defaults"), provided that
J -Sand has not cured or is not actively pursuing to
cure within a reasonable amount of time the Default
prior to termination:
(1) Failure to operate the Property for the
purposes set forth herein except during periods
necessary for repairs or renovation approved by
the City in writing or except as otherwise
contemplated by this Lease Agreement.
(2) Failure to abate any nuisance specified in
writing by the City within a reasonable time
specified in writing by the City.
(3) J -Sand's assignment of this Lease Agreement or
subletting of the Property, or attempted
assignment or subletting, without prior written
consent of City.
(4) Nonpayment by J -Sand of the amounts set forth
in section VIII hereof, remuneration.
(5) Failure to have in effect policies of
contractor's insurance, liability insurance,
and property insurance as required by the City
Manager or his designee.
(6) Intentional, knowing or fraudulent failure to
maintain strict and accurate books of account,
or to furnish said books of account to the City
for inspection.
(7) Abandonment of the Property.
(8) Failure of J-Sand to correct any other breach
in the performance or observance of any other
covenant or condition of this Lease Agreement.
(b) Upon termination of this Lease Agreement by default
as hereinabove provided, or pursuant to statute, or
by summary proceedings or otherwise, the City may
enter forthwith and resume possession either by
summary proceedings, or by action at law or in
equity or by force or otherwise, as the City may
determine, without being liable in trespass or for
any damages. The foregoing rights and remedies
given to the City are, and shall be deemed to be,
cumulative of any other rights of the City under
law, and the exercise of one shall not be deemed to
be an election, and the failure of the City at any
time to exercise any right or remedy shall not be
deemed to operate as a waiver of its right to
exercise such right or remedy at any other or
future time.
(c) No assent, express or implied, by the City to any
breach of any of Lessee's covenants, agreements,
conditions or terms hereof shall be deemed or taken
to be a waiver of any succeeding breach of any
covenant, agreement, condition or term hereof.
(d) Upon sixty days prior written notice to City,
J -Sand may terminate this Lease Agreement, provided
however all buildings, fixtures and improvements on
the Property shall become the property of the City.
Upon termination by J -Sand, City is not required to
pay any compensation for fair market value of
improvements or lost revenues.
(e) Upon ninety days prior written notice to J -Sand,
the City may, at its option terminate this Lease
Agreement. If J -Sand is not in default of any of
the terms of this Lease Agreement at the time of
termination, the City will compensate J -Sand for
the early termination of the Lease in accordance
with an average of the fair market value
established by a minimum of two independent
appraisals of the improvements performed by
qualified real estate appraisers acceptable to both
the City and J -Sand. If the City at its sole
option terminates this Lease Agreement during the
first 10 year period of the lease and J -Sand is not
in default, City will also compensate J -Sand for
lost revenue. Remuneration to J -Sand by the City
for lost revenue for the remainder of the initial
10 -year lease term will be based upon previous
revenue production.
(f) Except as otherwise expressly provided herein, upon
expiration of this Lease Agreement, or upon
(g)
termination thereof for any reason, all buildings,
improvements and fixtures on the Property shall
become property of the City. If the City does not
exercise the five year renewal option, prior to
title to the improvements passing to the City, the
City will pay J -Sand the fair market value of the
improvements as established by the average of a
minimum of two independent appraisals performed by
qualified real estate appraisers acceptable to both
the City and J -Sand. Provided, however, that
should this Lease Agreement be terminated prior to
acceptance by the City of completion of
construction under Provisions III and IV, said
buildings, improvements and fixtures shall become
property of the City only at the City's option. If
the City should, in such event, decide to decline
all or part of said Improvements, it shall give
J -Sand written notice to remove the improvements
declined by City within sixty (60) days of J -Sand's
receipt of such notice. If J -Sand fails to remove
such Improvements within that 60 day time period,
the City may remove and dispose of such
Improvements, and J -Sand shall be liable to the
City for all expenses incurred thereby.
In the event zoning regulations do not allow the
property to be used and improved in accordance with
Section III of this Agreement, and all procedures
to secure zoning designation in conformance with
the intended uses have been exhausted, this Lease
Agreement shall terminate as of the date of the
last government action taken with respect to the
re -zoning application on the property. J -Sand and
City agree that if the appropriate zoning
designation cannot be obtained, each party bears
its own expenses incurred with respect to this
Agreement and neither party has a right or claim as
against the other party.
XII.
ASSESSMENTS. In the event that any ad valorem taxes on
the land, improvements, or leasehold interest, or other liens,
assessments or taxes are levied upon the property as a result of
this lease at any time during the lease term, J -Sand agrees to
pay in full such assessments.
XIII.
MAINTENANCE. J -Sand at its sole expense will maintain
the Property, including the grounds, lawn and plant material,
interior and exterior of all buildings, and all improvements.
J -Sand will be solely responsible for all utility fees, and
sanitation and janitorial fees. Maintenance shall be of such
quality to maintain the Leased Premises in a first-class
condition. J -Sand will also be responsible for the grounds
maintenance of the park area bounded by Gulden Street, Gulfbreeze
Street, Sandbar Avenue, and North Shoreline Boulevard
rights-of-way, to include watering, mowing and litter pick-up.
xIv.
LANDLORD/TENANT RELATIONSHIP. It is specifically
agreed and understood that the parties intend and do hereby
create a landlord/tenant relationship, and this Lease Agreement
shall be construed conclusively in favor of that relationship.
Nothing herein contained shall be deemed or construed by the
parties hereto, nor by any third party, as creating the
relationship of principal and agent or of partnership or of joint
venture between the parties hereto, it being understood and
agreed that no provision contained herein, nor any of the acts of
the parties hereto, shall be deemed to create any relationship
between the parties herein other than that of Landlord and
Tenant.
WITNESS THE HANDS of the parties and duly authorized officers of
the parties hereto, this day of
19
ATTEST: CITY OF CORPUS CHRISTI
By: By:
City Secretary City Manager
APPROVED:
J5 day of ' p 1c 4-rnla 1'789
BY: A td �,tsnc
Assistant pity Attorney'
THE STATE OF TEXAS §
COUNTY OF NUECES
day of
§
This instrument was acknowledged before me on the
, 19 , by JAMES E. HALL.
THE STATE OF TEXAS §
COUNTY OF NUECES §
Notary Public, State of Texas
Type or Print Name of Notary
My Commission Expires:
This instrument was acknowledged before me on the
day of , 19 , by SANDRA HALL.
Notary Public, State of Texas
Type or Print Name of Notary
My Commission Expires:
ATTEST: J -SAND SERVICES, LTD.
By: By:
Secretary President
JAMES E. HALL
SANDRA HALL
THE STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on the
day of , 19 , by
City Manager of Corpus Christi, Texas.
Notary Public, State of Texas
Type or Print Name of Notary
My Commission Expires:
THE STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on the
day of , 19 , by
President, J -Sand Services, Ltd.
Notary Public, State of Texas
Type or Print Name of Notary
My Commission Expires:
DESCRIPTION:
EY -IT 1
WELSH ENGINEERING
3206 Reic Dr Suite 18-8
Corpus Christi. Texas 78404
(512) 551-9970
September 12, 1989
Blocks 1, 3 and a Southerly Portion of Block 2,
North Beach Park, Unit 1 and a Portion Brooklyn
Addition, For Lease Area
STATE OF TEXAS
COUNTY OF NUECES
Description of 21.913 acres of land, more or less, being owned by
the City of Corpus Christi and consisting of three parcels, the
first parcel being 12.239 acres and consisting of all of Block 1,
North Beach Park Unit 1, a map of which is recorded in Volume
53, pp. 125-126, Map Records, Nueces County, Texas, the second
parcel being 0.807 acres and consisting of all of Block 3, said
North Beach Park Unit 1 and the third parcel being 8.867 acres
and consisting of a portion of Block 2, said North Beach Park
Unit 1 and 1) a portion of Blocks 385 and 387, Brooklyn Addition,
a map of which is recorded in Plat Book "A", Page 31, said map
records, 2) a portion of an apparently closed public street
between said Blocks 385 and 387, 3) a tract of land north of said
Block 387 being un -designated or un -named by said plat of
Brooklyn Addition and 4) a portion of an apparently closed public
street to the north of said Block 387, said third parcel of 8.867
acres as further described by metes and bounds as follows:
Beginning at the point of intersection of the northeast right-of-
way line of Sandbar Street and southeast right-of-way line of
Timon Boulevard for the westernmost corner of this tract, said
westernmost corner being in the arc of a circular curve to the
right having a chord bearing of N43°37'21"E, a chord length of
247.45', a central angle of 4°47'37", a radius of 2,958.49' and a
tangent length of 123.83';
Thence along said southeast right-of-way line of Timon Boulevard
being the arc of said circular curve to the right a distance of
247.52' to the point of tangency;
Thence N46°01'08"E 510.17' along said southeast right-of-way line
of Timon Boulevard to a point for a northerly corner of this
tract;
Thence N52°48'35"E 68.08' along said southeast right-of-way line
of Timon Boulevard to a point for a northerly corner of this
tract;
Description of Blocks 1, 3 and a Southerly Portion of Block 2,
North Beach Park Unit 1 and a Portion Brooklyn Addition, For
Lease Area, Sheet 2 of 2, September 12, 1989, Continued:
Thence N47°19'54"E 212.00' along said southeast right-of-way line
of Timon Boulevard to a point for the northernmost corner of this
tract. said northernmost corner being in the arc of a circular
curve to the right having a chord bearing S18°42'33"W, a chord
length of 1028.52', a central angle of 80°00'20", a radius of
800.00' and a tangent length of 671.35';
Thence thru said Block 2 and along the arc of said circular curve
to the right at 314.36' pass a point in a northeasterly boundary
line of said Block 2, from whence point a northeasterly interior
corner of said Block 2 bears S36°22'46"W 116.58' and continuing
along the arc of said circular curve to the right thru said
portions of Brooklyn Addition in all a distance of 1117.09' to
the point of intersection of the southeast right-of-way line of
Gulfbreeze Boulevard and said northeast right-of-way line of
Sandbar Street for the southernmost corner of this tract;
Thence along said northeast right-of-way line of Sandbar Street
N58°31'19"W 490.15' to the Point of Beginning.
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That the foregoing ordinance was read for the first time
second reading on this the day of _ i,•'
following vote:
Betty N. Turner Edward A. Martin
David Berlanga, Sr. Joe McComb
Leo Guerrero Clif Moss
Tom Hunt Mary Rhodes
Frank Schwing, Jr.
and passed to its
, 19 f , by the
That the foregoing ordinance was read for the second time and passed to its
third reading on this the day of - /kiti%,<< , 19 y' ! , by the
following vote:
Betty N. Turner Edward A. Martin
David Berlanga, Sr.-' Joe McComb
Leo Guerrero l � - Clif Moss (C y
Tom Hunt ! Mary Rhodes �!
Frank Schwing, Jr. _! .
That the foregoing ordinance was read for the third time and passed finally on
this the �;L4 day of , 19 , by the following vote:
Betty N. Turner
David Berlanga, Sr.
Leo Guerrero
Tom Hunt
.1i
PASSED AND APPROVED, this the
ATTEST:
y ecretary
APPROVED:
DAY OF
HAL GEORGE, CITY ATTORNEY
By
, 19
Assistant City Attorney
99.044.01
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
day of
, 19 `/ .
THE CITY OF CORPUS CHRISTI, TEXAS
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